I'm trying to understand how to effectively utilize the long-short ratio in my trading strategy. Could someone explain its application and how it can help in making informed decisions?
5 answers
Elena
Tue Dec 03 2024
Sarah calculates her long-short ratio by taking into account the number of shares she holds in long positions.
Tommaso
Tue Dec 03 2024
This ratio indicates that for every share she has sold short, she holds two shares in long positions.
Martino
Tue Dec 03 2024
She then compares these long positions with the shares she has in short positions.
noah_wright_author
Tue Dec 03 2024
For example, if Sarah owns 1,000 shares in long positions, she would look at how many shares she has sold short.
CryptoPioneer
Tue Dec 03 2024
Let's say she has 500 shares in short positions. In this case, her long-short ratio would be 2:1.